Tipped Employee Protection Act

Bill Number

H.R. 2312

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Labor and Employment

Status

Introduced

Latest Action

2026-01-13: POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.

Last Updated

2026-06-11T23:26:37Z

AI-Generated Summary

Purpose

The Tipped Employee Protection Act (H.R. 2312) aims to update the definition of a "tipped employee" under the Fair Labor Standards Act of 1938 (FLSA), a key federal law that sets minimum wage and overtime standards. The goal is to ensure that tipped workers receive total compensation (tips plus cash wages) that meets or exceeds the federal minimum wage for each defined work period, regardless of their specific job duties.

Key Provisions

• Revised Definition of "Tipped Employee": A tipped employee is defined as any worker who receives tips and cash wages during a work period such that their combined earnings are at least equal to the federal minimum wage (currently $7.25 per hour under FLSA Section 6(a)(1)). This applies without considering the employee's job duties.
• Work Period Definition: A work period is any timeframe set by the employer, such as a single day, one week, every two weeks, every 28 days, or each pay period. Employers must ensure the minimum wage threshold is met within these periods.
• Cash Wage Reference: The provision ties into FLSA Section 7(m)(2)(A)(i), which allows employers to pay a lower cash wage (often called the "tip credit") to tipped employees, as long as tips make up the difference to reach the full minimum wage.

Significant Changes to Existing Law

• From Occupation-Based to Earnings-Based: Previously, a tipped employee was defined as someone in an occupation (e.g., waiter or bartender) who customarily receives more than $30 in tips per month. The new definition removes the occupation requirement and focuses solely on whether total earnings (tips + cash wages) meet the minimum wage for the work period.
• Flexibility in Work Periods: The law now explicitly allows employers to define work periods, providing clarity on when minimum wage compliance must be calculated, rather than relying on vague monthly tip thresholds.
• Elimination of Monthly Tip Threshold: The old $30-per-month tip minimum is replaced, shifting emphasis to per-period wage guarantees.

Potential Impacts

• On Workers (Citizens): Tipped employees, such as servers, bartenders, and delivery drivers, may see stronger protections against underpayment, ensuring they reach minimum wage even if tips fluctuate. This could reduce wage theft and improve financial stability for low-wage workers in the service industry.
• On Employers and Businesses: Restaurants, hotels, and other tipped-wage sectors must adjust payroll practices to track and supplement earnings per work period, potentially increasing administrative costs and cash wage payments. Small businesses might face compliance challenges.
• On Government Agencies: The Department of Labor (DOL), which enforces the FLSA, will need to update guidance, training, and enforcement tools to reflect the new definition, possibly leading to more investigations into tipped wage violations.
• No Direct International Relations Impact: The bill is domestic labor policy with no apparent effects on foreign relations.

Main Stakeholders Affected

• Tipped Workers: Primary beneficiaries, including millions in hospitality and service roles, who gain clearer wage protections.
• Employers in Tipped Industries: Businesses like restaurants and bars, which may need to revise pay structures and could face higher labor costs.
• Labor Unions and Advocacy Groups: Organizations like the National Restaurant Association (employer-side) or worker rights groups (e.g., those fighting for a higher minimum wage) will influence or be impacted by implementation.
• Federal Regulators: The DOL's Wage and Hour Division, responsible for FLSA oversight and potential rulemaking.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens FLSA enforcement by making the tipped employee definition more straightforward and less prone to disputes over "customary" occupations. It may lead to increased litigation if employers miscalculate work periods or tip credits, but provides clearer compliance standards to reduce ambiguity.
• Constitutional Implications: Aligns with the Commerce Clause (Article I, Section 8), as the FLSA regulates interstate commerce, including service industries. No apparent challenges to due process or equal protection, as it applies uniformly to tipped roles.
• Political Implications: Reflects ongoing debates over tipped wages, with supporters viewing it as a worker protection measure and critics (e.g., some business groups) arguing it could raise costs and affect tipping culture. As a House-reported bill in the 119th Congress, it signals potential bipartisan interest in labor reforms but may face Senate hurdles or amendments.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Womack, Steve [R-AR-3]

Cosponsors (6)

Rep. Baumgartner, Michael [R-WA-5], Rep. Sessions, Pete [R-TX-17], Rep. Westerman, Bruce [R-AR-4], Rep. Grothman, Glenn [R-WI-6], Rep. Letlow, Julia [R-LA-5], Rep. Messmer, Mark B. [R-IN-8]

Recent Actions

• 2026-01-13: POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.
• 2026-01-13: On motion to recommit Failed by the Yeas and Nays: 209 - 215 (Roll no. 21). (Roll call 21)
• 2026-01-13: Considered as unfinished business. (consideration: CR H694)
• 2026-01-13: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 2312, the Chair put the question on motion to recommit and by voice vote, announced the noes had prevailed. Ms. Budzinski demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
• 2026-01-13: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
• 2026-01-13: Ms. Budzinski moved to recommit to the Committee on Education and Workforce. (text: CR H690-691)
• 2026-01-13: The previous question was ordered pursuant to the rule.
• 2026-01-13: DEBATE - The House proceeded with one hour of debate on H.R. 2312.
• 2026-01-13: Rule provides for consideration of H.R. 2988, H.R. 2262, H.R. 2270, H.R. 2312 and H.R. 4366. The resolution provides for consideration of H.R. 2988 under a structured rule, and H.R. 2262, H.R. 2270, H.R. 2312, and H.R. 4366 under a closed rule. The rule provides for one hour of general debate and one motion to recommit on each bill.
• 2026-01-13: Considered under the provisions of rule H. Res. 988. (consideration: CR H685-691; text of amendment in the nature of a substitute: CR H685)
• 2026-01-12: Rules Committee Resolution H. Res. 988 Reported to House. Rule provides for consideration of H.R. 2988, H.R. 2262, H.R. 2270, H.R. 2312 and H.R. 4366. The resolution provides for consideration of H.R. 2988 under a structured rule, and H.R. 2262, H.R. 2270, H.R. 2312, and H.R. 4366 under a closed rule. The rule provides for one hour of general debate and one motion to recommit on each bill.
• 2025-12-30: Placed on the Union Calendar, Calendar No. 366.
• 2025-12-30: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
• 2025-12-30: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
• 2025-11-20: Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15.

Bill Versions

• Tipped Employee Protection Act — issued 2025-03-24 — PDF (2 pages)
• Tipped Employee Protection Act — issued 2025-12-30 — PDF (4 pages)

Related Bills

• H.Res. 988 (119th Congress)